Asia stocks edge higher in cautious trade; China PMI in focus

Beijing's official purchasing manager's index (PMI) for August came in at 51.1, below Reuters expectations for 51.2 and July's reading of 51.7. HSBC's final PMI reading for August. Separately, HSBC's final August PMI reading fell to a three-month low of 50.2.

"Despite today's slower pace of [PMI] expansion, the longer-term trend is still in an upwards trajectory. The fact we have seen a limited reaction to the PMI data in the China CSI 300 and CME copper suggests that today's economic data print will not derail [China's] 7.5% growth target.," said Chris Weston, chief market strategist at IG.

On Friday, the S&P 500 logged another record finish, enjoying its best August in 14 years, on upbeat consumer confidence data. Markets will be shut on Monday for the Labor Day weekend.

Japan's benchmark Nikkei index rebounded from a two-week low, snapping a two-session losing streak thanks to a depreciating currency. The yen weakened to a one-week low of 104.21 in early Asian trade, boosting exporters across the board.

Defense stocks rallied in Shanghai after President Xi Jinping called for military reform and innovation over the weekend. Beijing Aerospace Changfeng jumped over 7 percent while Sichuan Chengfa Aerospace rallied by the daily trading limit of 10 percent.